As of this morning there were 788 re-sale homes (SF 1,2,3) currently on the market in areas 1 - 7 within our MLS. THIS, BEFORE we move into our historically busy months of homes being placed for sale.
Here is a potential challenge that I see headed our way:
Let's consider buyers that purchased their new construction homes for $230 K - 260 K or more a few years ago, that now will attempt to sell their homes because they have received orders and must leave the area. In the seller's mind, if they purchased a home for $250,000 three years ago, surely it must be worth $270,000 now (or so they believe). That difference should cover the VA funding fee they paid when they purchased, as well as the real estate agents' fees, concessions they will make to the buyer, and any repairs that might be required. THIS JUST TO BREAK EVEN !
You would think that this is a reasonable assumption.
But wait just a minute...the builder that was constructing that home a few years ago for $250,000 is STILL building the same home at the same price of $250,000! (AND IT'S NEW!)
But there's more:
The builder is providing a LARGE amount of seller contributions, (for example significant amounts toward buyer closing costs and "use as you choose" money) that, more than likely, the re-sale home does not have available to offer.
You tell me which home sells.
The home sits on the market because the sellers are not in a position to be more competitive. They begin to get worried when the home doesn't sell...they have you place the home on the rental market in addition to the sales market...but because it is a higher end rental and there are other sellers in the same boat...the home isn't competitive on the rental market either.
Now the sellers have executed their PCS move, the home is vacant, the seller is paying for a rental at his new duty station and does not have the money to continue making the mortgage payments on the home for sale here.
WHAT DO WE DO TO HELP?
If you think about it, this is a VERY REAL scenario in the near future.
In my opinion, we MUST get some knowledge and information about the Short Sale process to meet the needs of potential future clients.
Wednesday, February 24, 2010
Sunday, February 14, 2010
ACTIVITY VS. PRODUCTIVITY
There is a distinct difference between activity and productivity.
In real estate sales it is very easy to ascertain what is "productive". If the activity leads to a closing, where the needs of your buyers (wanting to buy a home) or your sellers (wanting to sell a home) have been met, then that is productive. And, oh yeah, when the needs of your clients have been met, you get a fee for the services you provided .
That is important because the last time I went to the grocery store and told the cashier that I didn't have the money right now to pay for the groceries, but that I was very busy doing all kinds of activities and it was just a matter of time before I did, I found out the grocery store doesn't accept "activity" for payment.
Would you like a couple of other examples?
If you have a website, I don't care how many hits, clicks, impressions, unique visitors, the "stickiness" of the site, how great you think the information on it is....if the website isn't leading to appointments and ultimately closings...then it isn't productive.
How aboout training? Now let there be NO DOUBT I am one of the strongest advocates for training and education for our industry in our area. However, if you are attending a lot of classes...a lot of training sessions... applying what you are learning in those classes and it isn't leading to closings...then I challenge that training as being "productive".
Don't confuse activity with accomplishment.
Don't confuse activity with productivity.
A rocking horse generates a lot of "activity" but it doesn't get you one inch closer to your destination.
In real estate sales it is very easy to ascertain what is "productive". If the activity leads to a closing, where the needs of your buyers (wanting to buy a home) or your sellers (wanting to sell a home) have been met, then that is productive. And, oh yeah, when the needs of your clients have been met, you get a fee for the services you provided .
That is important because the last time I went to the grocery store and told the cashier that I didn't have the money right now to pay for the groceries, but that I was very busy doing all kinds of activities and it was just a matter of time before I did, I found out the grocery store doesn't accept "activity" for payment.
Would you like a couple of other examples?
If you have a website, I don't care how many hits, clicks, impressions, unique visitors, the "stickiness" of the site, how great you think the information on it is....if the website isn't leading to appointments and ultimately closings...then it isn't productive.
How aboout training? Now let there be NO DOUBT I am one of the strongest advocates for training and education for our industry in our area. However, if you are attending a lot of classes...a lot of training sessions... applying what you are learning in those classes and it isn't leading to closings...then I challenge that training as being "productive".
Don't confuse activity with accomplishment.
Don't confuse activity with productivity.
A rocking horse generates a lot of "activity" but it doesn't get you one inch closer to your destination.
Saturday, February 6, 2010
BEYOND THE GOLDEN RULE
Everyone knows the Golden Rule: Do unto others as you would have them do unto you.
In the book The Platinum Rule by Tony Alessandra this is taken to a whole new level of service.
The Platinum rule is: "Do unto others as they want done unto them."
Instead of making the assumption that your clients want to be treated the same way that you do, the Platinum Rule requires that you find out the needs, goals, priorities, and desires of your clients and then do your best to give that to them.
If you are looking for that little extra in the service you provide that is the difference between ordinary and extraordinary, try practicing the Platinum Rule.
In the book The Platinum Rule by Tony Alessandra this is taken to a whole new level of service.
The Platinum rule is: "Do unto others as they want done unto them."
Instead of making the assumption that your clients want to be treated the same way that you do, the Platinum Rule requires that you find out the needs, goals, priorities, and desires of your clients and then do your best to give that to them.
If you are looking for that little extra in the service you provide that is the difference between ordinary and extraordinary, try practicing the Platinum Rule.
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